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One way to search for undervalued stocks is by looking for recent underperformers that have strong operation trends. If a company’s operations are healthy, stock underperformance may be a great opportunity to buy in.

Here we list 4 stocks that are trading just above their 52-week lows. However, these stocks have also exhibited healthy growth in quarterly operating cash flow year-over-year, in excess of growth in quarterly net income for the same period.

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Do you think these stocks will soon bounce back? Use this list as a starting point for your own analysis.

List sorted by difference between growth in quarterly operating cash flow and quarterly net income.

1. American National Insurance Co. (NASDAQ:ANAT): Life Insurance Industry. Market cap of $2.14B. The stock is currently 9.35% above its 52-week low. Net Income grew by 39.39% ($48.5M vs. $34.8M y/y), while Operating Cash Flow grew by 41.67% ($45.8M vs. $32.4M y/y) (comparing 3 months ending 2011-03-31 vs. 3 months ending 2010-03-31). The stock has lost 21.84% over the last year.

2. Teva Pharmaceutical Industries Limited (NYSE:TEVA): Drug Manufacturers Industry. Market cap of $46.54B. The stock is currently 9.36% above its 52-week low. Net Income grew by 6.73% ($761.0M vs. $713.0M y/y), while Operating Cash Flow grew by 8.98% ($825.0M vs. $757.0M y/y) (comparing 3 months ending 2011-03-31 vs. 3 months ending 2010-03-31). The stock has had a couple of great days, gaining 5.14% over the last week.

3. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $22.46B. The stock is currently 3.43% above its 52-week low. Net Income grew by 31.57% ($934.3M vs. $710.1M y/y), while Operating Cash Flow grew by 33.47% ($1.1B vs. $791.2M y/y) (comparing 3 months ending 2011-02-26 vs. 3 months ending 2010-02-27). RIMM might be undervalued at current levels, with a PEG ratio at 0.62, and P/FCF ratio at 9.31.The stock has performed poorly over the last month, losing 20.51%.

4. ResMed Inc. (NYSE:RMD): Medical Appliances & Equipment Industry. Market cap of $4.81B. The stock is currently 7.56% above its 52-week low. Net Income grew by 9.26% ($53.4M vs. $48.8M y/y), while Operating Cash Flow grew by 10.42% ($49.0M vs. $44.3M y/y) (comparing 3 months ending 2011-03-31 vs. 3 months ending 2010-03-31). The stock is a short squeeze candidate, with a short float at 9.6% (equivalent to 15.02 days of average volume). The stock has lost 8.47% over the last year.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 4 Undervalued Stocks With Strong Growth in Operating Cash Flow